IPH Limited, the ASX-listed IP firm, is so determined to stop the merger of its rivals Xenith and Qantm that is has used $33m of its debt facility to buy approximately 19.9% of the equity in Xenith.

IPH will use its stake to vote against the Xenith/Qantm merger. Instead, IPH believes that an alternative transaction involving a strategic combination of one of these business with IPH has the potential to create significant value. This would require ACCC approval.

IPH acquired its interest in Xenith from institutional investors at $1.85 per share. 

Qantm announced that it intends to proceed with the “proposed merger of equals” with Xenith.

Xenith announced today that IPH has not communicated its intentions towards Xenith and that the proposed merger with Qantm is proceeding as per previous plans.

Xenith has recommended that shareholders take no action and await further information the board.